Zurp
I have misplaced my pants.
I'm 100% in agreement with you. But those putting money into the NIL buckets aren't looking to make the kids rich. They're looking to convince the kids to go to that school. You don't convince kids to go to that school to play for that team by saying, "Yeah, buy a house and then rent it out when you're done," even though I'm sure you're right that that's the smart way to do it. Kids want to drive the fun car and see that the kid who plays for that team gets to have the fun car so maybe I want to go there, too.Three words. Stanford Marshmallow Experiment. Not to insult anyone, any kid who has been raised to appreciate the value of money would make the right choice and realize that he will be known in life for his true wealth, not what he buys (or gets the monetary value to rent) for flash.
Force your kids to read the best seller "The Millionaire Next Door" (link). American society is the poster child for under-accumulation of wealth. All that money, and yet most Americans are inadequately prepared financially for retirement.
I know a kid who received an engineering degree scholarship with a cash bursary and guaranteed job on graduation if he wanted it. He and three buddies rented a house while in college. He used the savings to buy a flat in the campus area in Cape Town and a 10-year old truck and started work for a telecommunications company while he did a Masters in IT followed by an MBA. He finished in the top 5% of his class. All are financially very well off today.
He married a beautiful doctor in his 30s and they have two kids. He bought that house in an area that was gentrifying and he is still collecting rent every month on it. Works in data science job and doing well enough to build houses on spec and sell.
Forget the marshmallows in life. How many pro football players retire with nothing to show for it? What about Mike Tyson's flash house that no one would buy when he crashed. It's not about the flash. It's about the cash you retain to live your best life.
You're on the right track with the Stanford Marshmallow Experiment. But the kid who gets what he wants now gets to be on social media dancing and showing how great it is. The kid who waits to get a bigger/better reward isn't celebrated. (And the celebration is part of the reward.)
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